Johari: Malaysia’s chip talent retention remains sustainable despite foreign offers

KUALA LUMPUR, Oct 21 — Malaysia's chip industry continues to attract local talent, with starting salaries for junior engineers and technicians reflecting steady career progression, even when foreign markets lure workers with higher pay, according to Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani. In Parliament, Johari addressed wage competitiveness and talent retention, revealing that junior engineers typically earn between RM3,500 and RM6,000, while technicians command salaries ranging from RM3,000 to RM5,000 based on their tenure.

Although these figures may appear modest compared to overseas counterparts in nations like Taiwan or South Korea, Johari emphasized that the increased cost of living in those countries must also be taken into account. He noted that salaries abroad, particularly in the UK, Singapore, Korea, or Taiwan, can be two to three times higher.

Nonetheless, he pointed out that the cost of living in these nations is significantly higher as well. The government is striving to position Malaysia as a key player in the semiconductor industry within the next decade, implementing policies to elevate the domestic semiconductor ecosystem along the value chain. As Southeast Asia's fourth-largest economy by GDP, Malaysia plays a pivotal role in the global transistor supply chain, primarily in back-end testing and assembly.

Prime Minister Datuk Seri Anwar Ibrahim has expressed his desire to see Malaysia transition into front-end design and wafer fabrication. Retaining skilled human capital through progressive wage structures in Malaysia is crucial to achieving the nation's advanced technology aspirations. However, Johari clarified that compensation in Malaysia's industrial sector must be evaluated within the context of the domestic standard of living.

He added that local pay structures could expand considerably for specialized roles as experience accumulates.